As interest rates ________, a firm would have to pay less now to purchase the same number of future dollars.
A. remain unchanged
B. rise
C. fall
D. Interest rates have no bearing on the payment for future dollars.
Answer: B
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In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to raise production, and output will continue to rise
A) below; negative B) above; negative C) below; positive D) above; positive
Which of the following problems associated with asymmetric information can be avoided by using a product warranty?
a. Lemons problem b. Problem of adverse selection c. Moral Hazard d. Problem of blind sight
At any price equal to ______ a firm can maximize profit either by producing the best positive sales quantity or by shutting down.
A. the maximum of AC B. the minimum of MR C. the minimum of AC D. the minimum of MC
Which of the following lists two things that both increase the money supply?
a. the Fed buys bonds and lowers the discount rate. b. the Fed buys bonds and raises the discount rate. c. the Fed sells bonds and lowers the discount rate. d. the Fed sells bonds and raises the discount rate.